Consumer lending will now follow new rules: details
The National Bank of Belarus has revised the policy on granting loans. In order to reduce hidden payments, consumer lending will now be implemented under the new rules.
According to the recommendations of the National Bank, Belarusian financial institutions will refuse to use installment cards, which were quite popular among the population. In addition, various types of rewards fall under the restrictions. The size of tariffs, bonus systems and commissions will also be reviewed. According to the main financial institution of the country, the volume of such hidden payments reached up to 30%, and these amounts had to be paid to customers one way or another.
The first to introduce new rules for consumer lending will be Belarusbank. Since this month, there have been no loans under the program “Installment without overpayment. It should be noted that the popular credit product – Magnit installment cards have not been canceled yet, and there has been no information about their liquidation or changes in receipt in the near future.
Priorbank went a slightly different way. It provides stricter conditions for customers who make installments for a period of six months or more. In this case the loan will no longer be interest-free and its annual rate will be up to 6%. Previously, the bank charged an amount much lower – 0.01%, even if the installment plan was given for 24 months.
We are pleased to hear from MTBank, where changes in the provision of the Halva card have not yet been announced. VTB Bank also retains favorable conditions for Cherepaha card. However, it should be understood that financial institutions can change the rules and programs of consumer lending at any time, if instructed by the National Bank of Belarus.
Installment cards are a profitable tool for the population. You can use them to buy home appliances, make other major purchases. However, the National Bank has decided to study this type of financial services for a reason. Despite the fact that the installments are interest-free, the commission, paid by the store in the future, may reach 30%. These costs the store initially invests in the cost of goods, and it turns out that in any case, the buyer overpays.
However, many experts agree that such a step by the National Bank will not give the expected result. It’s unlikely that the stores will reduce the price of goods by 26%. Therefore, in order to keep the consumer, banks may provide loans, but for a limited period of time.
It should be noted that large chains of shops refute the claim that the retail price of goods is subject to commission, so the innovations will be ineffective in controlling the formation of the value of products.